12 Sep 2012

More time granted to Portugal

10:13 am on 12 September 2012

Portugal has been given one more year to reduce its deficit.

Finance Minister Vitor Gaspar said the EU, International Monetary Fund and the European Central Bank felt progress had been made in rebalancing the economy.

But they concluded that Portugal needed more time to meet its bailout targets.

Portugal must get its deficit below the European Union's target of 3% of GDP.

Mr Gaspar said eurozone governments have already sanctioned the extension.

The BBC reports no extra finance is to be provided beyond the 78 billion euros in loan guarantees already agreed for the three-year bailout period.